Search - Listed Personal Property

Reasons: Where subsections 74.2(1) and (2) attribute a taxable capital gain on the disposition of a property to an individual, in determining whether the property may be considered qualified farm property of the individual under subsection 110.6(1) of the Act, we would look to when the individual last acquired the property. ... The Wife became sole owner of the Property. The transfer and sole ownership of the Property by the Wife was registered for land registry purposes. 3. ... Where an individual has transferred or loaned property to the individual's spouse or common-law partner, such that subsection 74.2(1) of the Act applies, any taxable capital gains or allowable capital losses arising from the subsequent disposition of the property or property substituted for it (other than listed personal property) are deemed to be taxable capital gains or allowable capital losses of the individual and not of the spouse or common-law partner pursuant to paragraphs 74.2(1)(a), (b) and (e). ...

4 August 2009 External T.I. 2009-0320491E5- Personal services business Unedited CRA Tags 18(1)(p) 125(7) "personal services business" Principal Issues: Whether a series of expenses incurred by a personal services business is deductible under paragraph 18(1)(p) of the Income Tax Act (Canada). ... Corporation A carries on no business other than the personal services business. 3. ... Corporation B proposes to deduct the fees it would pay to Corporation A, as well as any other amount listed in facts 3(c) to (i) above that it would pay on behalf of Corporation A. 5. ...

Principal Issues: Is a maple leaf gold coin necessarily a listed personal property? Position: No Reasons: It is a question of fact as to whether a coin or any other property is a listed personal property. ... In order to be a listed personal property, the property must be a personal-use property to the taxpayer. ...

The first requirement is set out in paragraph 110.6(1)(a) of that definition which requires that throughout any 24-month period ending before the particular time more than 50% of the fair market value ("FMV") of the corporation's property must be attributable to property listed in subparagraphs (a)(i) to (iv). Generally speaking, such property includes: property (i.e., land) that was used principally in the business of farming in Canada in which the individual or certain family members (i.e., a spouse or common-law partner, child or parent of the individual) or a beneficiary of a personal trust was actively engaged on a regular and continuous basis; shares or debt of one or more corporations where all or substantially all or substantially all of the FMV of such property is attributable to property used in the business of farming in Canada; a partnership interest in or indebtedness of one or more partnerships where all or substantially all or substantially all of the FMV of such property is attributable to property used in the business of farming in Canada; or any combination of the above. ... In respect of your other questions, which appear to be somewhat of a tax planning nature, you could refer to the following Interpretation Bulletins: IT-268R4, Inter Vivos Transfer of Farm Property to Child; IT-349R3, Intergenerational Transfers- Farm Property; and IT-433R, Farming or Fishing- Use of Cash Method for some general comments and guidance on these matters. ...

Gifts in kind of a taxpayer include capital property, depreciable property, personal-use property including listed personal property, a leasehold interest, a residual interest, a right of any kind whatever, a licence, a share, a chose in action and inventory of a business. ... Under subparagraph 40(2)(g)(iii) of the Act, a loss on a disposition of personal-use property, other than listed personal property, is deemed to be nil. ... Listed personal property is defined in subsection 54(1) of the Act to mean personal use property that is all or any portion of, or any interest in or right to, any print, etching, drawing, painting, sculpture, or other similar work of art; jewelry, rare folio, rare manuscript, or rare book; stamp; or coin. ...

Our Comments Qualified farm property, as defined in subsection 110.6(1) of the Income Tax Act (the "Act") includes real property owned by an individual (including a personal trust) provided it was used in the business of farming in Canada by one of five categories. ... The primary question to be answered in this case is whether the property is a qualified farm property of the spouse trust. ... In the third question you posed, the capital beneficiaries listed above would qualify as preferred beneficiaries under paragraph 108(1)(g) as they are the children of the settlor of the trust. ...

It should also be noted that for purposes of this reply, we assume that gifts to the Museum qualify as gifts to the Crown in right of XXXXXXXXXX (see the enclosed copy of Interpretation Bulletin IT-297R2 for further information on gifts to the Crown), and that the coins are "personal-use property" and, therefore, also "listed personal property" of the donor, as these terms are defined in section 54 of the Income Tax Act (the "Act") (see the enclosed copy of Interpretation Bulletin IT-332R, for further information on these terms). ... Where the property disposed of is listed personal property, in calculating any resulting gain or loss, reference must be made to subsection 46(1) of the Act. ... Thus a reportable gain from the disposition of a listed personal property (or any other personal-use property) can only occur only if the proceeds of disposition are more than $1,000. ...

In our view, when a partnership disposes of capital property (other than listed personal property) any taxable capital gain or loss arising on the disposition is calculated as if the partnership were a separate person by virtue of paragraph 96(1)(c) of the Act. ... In addition when a partnership disposes of capital property that is "qualified small business corporation shares" as defined in subsection 110.6(1) of the Act resulting in a taxable capital gain, it is our opinion that each individual partner would be eligible to claim the enhanced capital gains deduction under subsection 110.6(2.1) of the Act subject to the provisions of subsection 110.6(11). ...

Subparagraph 3(b)(ii) reads as follows: "(ii) the amount, if any, by which his allowable capital losses for the year from dispositions of property other than listed personal property exceed his allowable business investment losses for the year," While a business investment loss is a capital loss in nature, it is clear from the wording of the above subparagraph that an ABIL is effectively removed in the computation of the subparagraph 3(b)(ii) amount. ...

Paragraph 38(b) of the Act defines an allowable capital loss for a taxation year from the disposition of any property as "3/4 of (the) capital loss for the year from the disposition of that property". ... Subparagraph 3(b)(ii) of the Act refers to an amount, if any, by which "allowable capital losses" for the year from dispositions of property other than listed personal property exceed "allowable business investment losses" for the year. ... X's capital loss for the year on the disposition of that property. ...